1 What is meant by global economy is continuing to grow Expl

1. What is meant by \"global economy is continuing to grow\"? Explain how the global economy can affect the Australian Economy?

2. What are commodity prices and terms of trade? Why would terms of trade for Australia deteriorate if commodity prices are low? What possible effect will this have for Australia?

3. What is Monetary Policy? Clarity the meaning of the statement \"monetary policy remains remarkably accommodating\"

4. Define inflation and explain why the Reserve Bank of Australia expects inflation to remain low?

5. How do exchange rate affect the \"trade sector\"? Describe this sector and how the exchange rates impact on it.

6. Interest rates are on hold at the moment. Do you think they will change and why?

The answers should be in form of a simple report and address the questions directly. report should be no more than 1200 words. Answers given without appropriate recognition and explanation of the causes and effects involved will be deemed to be incomplete.

Solution

1.there is increase in the inflation adjusted market value of the goods and services.

Global economy affect the Australian economy in three ways-through resources,services and capital outflow.resources is the major one with demand for Australian export products such as iron ore lessening.